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Feel like staying away from USD during the FOMC minutes release?

Today we’re checking out EUR/AUD possibly retesting a resistance trend line ahead of Eurozone’s GDP release and Australia’s labor market reports.

Get your EUR/AUD 4-hour chart ready!

Before moving on, ICYMI, yesterday’s watchlist checked out GBP/USD’s Double Top situation after the UK printed weak reports. Be sure to check out if it’s still a valid play!

And now for the headlines that rocked the markets in the last trading sessions:

Fresh Market Headlines & Economic Data:

Eurozone’s 30.8B EUR trade deficit reflects higher energy costs in June

German ZEW sentiment index declines from -53.8 to -55.3 in Aug, the lowest since 2008

Canada’s inflation slows from 8.1% to 7.6% in July, BOC Gov. Macklem says “inflation may have peaked”

Higher mortgage rates and construction materials prices drag on US July housing starts and building permits

US industrial production rises by 0.6% in July vs. 0.3% expected

NZ producer price outputs rise 2.4% in Q2

Japan core machinery orders rise 0.9% vs. 1.3% uptick expected in June

AU wage growth up by 2.6% in the year to June – the fastest since Sept 2014 – but still lagged behind inflation

RBNZ raises interest rates by 50 bps to 3.00% as expected

Soaring food and energy costs drive UK inflation to new 40-year high of 10.1% in July

Crypto.com gets UK regulatory approval

ONS: UK house price growth slows sharply to 7.8% in June

Financial stocks lift European bourses; flash GDP data in focus

Upcoming Potential Catalysts on the Forex Economic Calendar:

Eurozone’s flash GDP at 9:00 am GMT
U.S. retail sales at 12:30 pm GMT
EIA crude oil inventories at 2:30 pm GMT
FOMC meeting minutes at 6:00 pm GMT
AU labor market numbers at 1:30 am GMT (Aug 18)

Use our new Currency Heat Map to quickly see a visual overview of the forex market’s price action! 🔥 🗺️

What to Watch: EUR/AUD

EUR/AUD 4-hour Forex Chart

EUR/AUD 4-hour Forex Chart

Positive earnings from big U.S. retailers encouraged risk-taking that carried over to Asian and early European trading.

Will the good vibes extend to today’s U.S. session traders?

Risk-taking can extend EUR/AUD’s upswing. As you can see, the pair found support at 1.4400 and is now trading above a Reverse Head and Shoulders pattern on the 4-hour time frame.

The pair can hit the 100 SMA or retest a trend line resistance that’s been around since mid-July if growth concerns in China – one of Australia’s largest export markets – continue to push EUR/AUD higher.

Of course, EUR/AUD’s downtrend can hold for another day if reports scheduled in the next trading sessions weigh on EUR and somehow push AUD higher.

Eurozone is about to print its second Q2 GDP reading, which is expected to confirm a 0.7% uptick after Q1’s 0.5% growth.

Meanwhile, Australia’s employment numbers scheduled during the early Asian session could reflect continued (but slower) labor market activity in July.

And then there’s the U.S. retail sales and FOMC meeting minutes, which can influence overall risk-taking in the markets.

If EUR/AUD bounces lower from its trend line resistance, then it could head back to the 1.4570 and 1.4450 previous support zones.